I’ve written several articles in recent months explaining why I think BTC – the world’s biggest digital currency by market capitalization – is set for a massive crash.
Of course, the price is already down 71% from its all-time high, but that doesn’t mean it can’t fall further.
In fact, what I’m seeing on the chart now tells me that a further breakdown could be imminent.
Let me explain…
The Big Picture
The big picture for BTC continues to show a series of lower highs and lower lows, which is a classic sign of a bearish trend.
If you’re looking for a sign to stay away from a particular stock or asset, this is a good one to remember.
Now, regular readers have heard me talk about consolidation ranges and how they always ultimately lead to a breakout or breakdown.
Well, if we draw the chart a different way, we can see that each of the downswings has really been a series of breakdowns from various consolidation ranges.
These consolidation ranges are sometimes called channels or bearish “flag” patterns, but the point is the same…
Each time BTC has consolidated since the all-time high, it has led to a further breakdown in the price.
And surprise, surprise… BTC is now consolidating again in a horizontal channel between roughly $21,500 and $19,000.
What’s Next?
We all know that history doesn’t repeat itself, but it often rhymes…
And given the technical picture outlined above as well as my deep fundamental belief that BTC is ultimately not a currency nor a hedge against inflation…
I fully expect BTC to sell off further when it breaks down from the current channel.
However, there is one thing to keep in mind about the current consolidation that’s different this time…
As you can see in the weekly chart above, BTC is now resting right on its old all-time high at about $20,000, which could act as strong support.
While I don’t think this changes the situation much, key levels from the past should always be taken into consideration when examining support and resistance.
Be Aware of Hidden Levels
These key levels from the past are often “hidden” on the left side of the chart, but we don’t want to omit them from our analysis.
The 2017 all-time high has supported the price for the last five weeks. But if it breaks down, which I expect it will, there isn’t much support until the $11,500 level.
This level marked the breakout point for the huge rally that started in 2020, and if key support at $20,000 breaks down, I will expect the price to drop back to that level.
So, while BTC has already crashed over 70% in just seven months, I see no reason that it can’t plunge another 40% from here.
I’ll do my best to keep you updated as the market action develops…
Ready for the Big Show?
Before I go, I need to invite you to a LIVE special event happening on TODAY, July 13th, at 12 p.m. ET…
My colleague and expert trader Josh Martinez is set to unveil his brand-new professional-grade system that virtually anyone can use with minimal upfront investments…
We’re talking as low as FIFTY BUCKS! You don’t want to miss this!
Click here to snag your seat for the main event happening TODAY at 12 p.m. ET.
I look forward to seeing you there!
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
